Tomorrow's ECB rate decision meeting will probably be a non-event in the opinion of BNP Paribas economist Clemente De Lucia, who believes that the central bank's monetary policy should remain "extremely accommodative.”

Clemente De Lucia points out that even though we cannot talk about the end of the Eurozone crisis yet, there are signs of advancing recovery and of improvement in financial market conditions. Still, he notes that “their effects have not yet passed on to the real economy” thus “it is too early for any 'exit strategy' or changes of the monetary policy stance.”

Feb 6, 2013

Forex Flash: USD/JPY touches 94 encouraging strong Nikkei gains – BBH

Brown Brothers Harriman analysts note that news that BOJ Governor Shirakawa will step down a few weeks early, in line with the end of his deputies’ terms, is seen as bringing forward the timing of more aggressive monetary policy.

Usually ECB President Mario Draghi dismisses talking about the euro exchange rate. However for tomorrow's press conference, Commerzbank can't exclude possible statements on the development of the euro exchange rate and the effects on growth and inflation as in the meeting last January. “In particular, they might reflect a view which was initially making the rounds as unconfirmed comments from ECB circles yesterday and which was then also taken up by the MPC member Erkki Liikanen: the stronger euro reflects the rising confidence in the euro zone and an improved fundamental position”, wrote analyst Carolin Hecht, pointing out that the exchange rate is influential for the euro zone economy but not the target of the ECB’s monetary policy, but unclear if the markets will make this small but important distinction tomorrow.